TLDR Crypto 2024-05-06

A lawsuit was filed against Coinbase by a few individuals in California and Florida alleging that Coinbase violated state securities laws with its digital asset sales. The lawsuit claims that SOL, MATIC, NEAR, MANA, ALGO, UNI, XTZ, and XLM as securities. Coinbase has previously argued that secondary crypto asset sales are not securities transactions.

Alexander Vinnik, co-founder of BTC-e, pleaded guilty to charges related to a $9 billion money laundering scheme that enabled illegal transactions from various crimes like hacking and drug trafficking. The DOJ stated that BTC-e lacked crucial legal compliance measures and that Vinnik used shell companies for illicit fund transfers, resulting in substantial criminal financial losses.

As part of Maker's Endgame rebranding, it will release two new tokens with to-be-released names. NewStable is an upgraded version of DAI with greater stability features and a design that facilitates broader adoption. NewGovToken is the next version of MKR, incentivizing more participation and dynamic decision-making. MKR can be converted to NewGovToken at a rate of 1:24,000.

Vodafone is planning to integrate crypto wallets into SIM cards, aiming to enable mobile users to leverage blockchain technology globally. Amidst these tech advancements, the company is also managing a substantial debt strategy involving raising nearly $3 billion, including a $1.8 billion loan initiative.

Liquid crypto, defined as funds investing in already liquid assets without encumbrances, presents a significant investment opportunity but faces challenges including fund performance volatility and reputational risks from potential asset theft. Despite the rise of low-fee ETF alternatives, liquid funds may continue to be dominated by proprietary capital from Chicago and Asia due to these complexities and the need for strong risk tolerance from top management.

For L2 to L2 transactions, Orbiter offers low fees, high speed, and a points system for future tokens. For USDC, Circle's CCTP offers a flat $1 fee, but takes 20-30 minutes. Squid Router is the best choice for Cosmos-based bridging. DeBridge is fast, has a points system, and can bridge between EVM chains and Solana.

The trend of companies staying private longer reflects a shift similar to what happened with VC and IPO markets, where significant gains are captured by private equity, sidelining retail investors from early profits. In crypto, a similar pattern has emerged with key L1 and L2s raising substantial funds from VCsl, excluding retail investors from early, lucrative investing opportunities.

Capital formation incentives in crypto are heavily influenced by existing market dynamics, with pressure to conform to established norms affecting both new teams and investors. Despite the shift away from ICOs, retail investors have been disadvantaged, leading to distorted market structures and challenges for startups trying to break the mold.

BlackRock's Ethereum-based money market fund has reached an AUM of approximately $400 million.

Airdrops started as a way to decentralize a community and incentivize their participation in the DAO or network.

Hayden Adams, the founder of Uniswap, says that token distributions should be ethical and transparent and discourages the use of ambiguous or manipulative tactics (e.g., points).

A 26-year-old man has been arrested in connection with a large-scale scam involving the alleged gambling platform ZKasino, which attracted over 30 million US dollars in crypto investments.